The Japanese company Mabuchi Motor Company Limited Mabuchi Motor asked the USTR not to raise tariffs on Mexican auto parts in the United States during consultations on the six-year review of the USMCA.

Anne Hoef, treasurer of Mabuchi Motor America Corp., stated this position at the public hearing held on December 4.

Tariffs on Mexican auto parts

Mabuchi Motor America Corp. was founded in 1977. Since then, it has operated from its headquarters in Troy, Michigan, a suburb located 34 kilometers north of Detroit. The company thus became part of the industrial heartland of the US automotive sector.

This subsidiary supplies DC motors for power windows and electric seats in vehicles in North and South America. It also employs 38 people locally. At the same time, it collaborates with third-party warehouses in Michigan, Alabama, Texas, and Ontario, Canada.

Mabuchi Motor America is a wholly owned subsidiary of Mabuchi Motor Company Limited. The parent company is a world leader in DC motors. As a result, the subsidiary has established itself as a key supplier to the North American automotive industry.

Mexican production

Hoef told the hearing that Mabuchi Motor Mexico is also a wholly owned subsidiary of Mabuchi Japan and a supplier to Mabuchi America. 

In 2014, Mabuchi Mexico established itself as a strategic manufacturing hub. Its goal was to meet the growing demand for DC motors for power windows—also known as window regulators—and power seats from regional automotive manufacturers.

According to Hoef, this decision was driven by favorable conditions under the USMCA, which allowed for duty-free imports from Mexico. Production was moved from China to Mexico in response to Section 301 tariffs, creating jobs and investment in North America.

“Millions of dollars were invested in the construction of the Mabuchi Mexico plant, and it took our customers several years to validate the production lines before they could purchase our Mexican-made motors for their manufacturing processes,” Hoef said.

Hoef argued that tariffs on his company’s Mexican-made motors would pose a serious and immediate threat to Mabuchi America’s financial stability. “These motors represent a substantial portion of our annual sales. An abrupt and unavoidable tariff cost would directly and dramatically impact our cash flow and profitability,” she said.

The company is not aware of any DC motor manufacturer located in the United States that manufactures this type of motor in a volume that would meet the demand of U.S. customers.